What Is a 401(k) Retirement Plan?
A 401(k) is a type of savings account that allows you to defer paying income tax on your contributions until retirement. Although we use the term “defer,” the major advantage of a 401(k) over a traditional savings account is that it enables you to pay less overall taxes on the money you’re saving.
Used wisely, a 401(k) is one of the best tools available to help you plan for a secure retirement.... Continue reading
IRA Contribution and Deduction Limits for 2019 and 2020
An individual retirement arrangement, often known as an individual retirement account and shortened to IRA, can provide you with a tax benefit as you save for retirement.
However, the IRA contribution limits and income limits can change over time. Double-check the IRA limits for 2019 and 2020, and learn how to correct excess contributions if you made a mistake.
Traditional and Roth IRA... Continue reading
Need to Know: Required Minimum Distributions (RMDs)
What Is a Required Minimum Distribution (RMD)?
A required minimum distribution (RMD) is a mandatory annual withdrawal that you must take from certain types of tax-advantaged retirement plans. If you don’t take your RMDs in time, you could have to pay a steep 50% tax on the money you should have withdrawn. However, the amount you’re required to withdraw can change each year because it depends on... Continue reading
6 Ways to Recession-Proof Your Retirement
Is it possible to predict a recession? The short answer is: not really. The Great Recession of 2008, for example, famously blindsided many economists worldwide.
So why are recessions so hard to forecast? According to a recent article in Bloomberg Businessweek, “The main reason is that it’s simply a hard job. Information about the economy is incomplete and arrives with a lag. And turns in the... Continue reading
Personal Finance Strategies: Retiring
Having enough to live on in your golden years isn't an issue of luck, but of careful planning. If you’re looking to put together a retirement plan but don’t know where to start, use these tips to set yourself up for a comfortable, financially stable future. Continue reading
Best Long-Term Budgeting Tools to Plan for Retirement
Using the right budgeting software not only helps you reach your retirement savings goals, it can also ensure you manage your money well through the three phases of retirement. Continue reading
Personal Finance Checkup: How to Tell if You're On Track with Retirement Savings
Know Your Current Financial Status
The first step is knowing the status of your personal finances. "Getting from point A to point B, financially speaking, starts by knowing where point A is," says certified public accountant, Mark Noel. You need to consider your current income, assets, debts and expenses. If you've created a detailed monthly budget, you'll have a good idea about how much... Continue reading
Healthy Retirement 101: What to Do in Your 30s
By the time you reach your 30s, you’ve probably sown many of your wild oats, leaving your mind more focused on practical considerations like settling down, buying a home and raising a family. You might also want to keep your eye on a plan for retirement. You may have started one in your 20s, but if not, it’s certainly not too late to catch up now.
Decide on the Percentage You'll Save
Figuring out... Continue reading
Am I Ready to Retire? Financial Management for Your Future
Am I Ready to Retire? Financial Management for Your Future
With savings, this could be you.
It's never too early to get started on financial management for your future. Great retirements require planning and long-term financial management: you need to build up money and pay down debt so that you can afford to do what you want when you're done working. Even so, "whether you're 24 or 64, you'd be... Continue reading
